Stellantis, citing global demand, laying off 150 at Jeep Cherokee plant

The Belvidere (Illinois)  Assembly Plant, where the Jeep Cherokee SUV is made, is laying off 150 workers.

Stellantis, the parent company of Jeep since the merger of Fiat Chrysler Automobiles and Peugeot maker PSA Group, confirmed the news Tuesday.

“The Stellantis plant in Belvidere, Illinois, is rebalancing its staffing levels as it realigns production to meet global demand for the Jeep Cherokee. Following a review of its operations, 150 people will be indefinitely laid off, starting Feb. 20, 2021. The company will make every effort to place indefinitely laid off hourly employees in open full-time positions as they become available based on seniority,” according to a company statement sent by spokeswoman Jodi Tinson.

Both a local union president and a UAW spokesman in Detroit have been asked for comment.

The Cherokee is the smaller of the two SUVs sporting the name. The larger Grand Cherokee is built in Detroit.

The Belvidere plant, which over the years has produced a range of Plymouth, Dodge, Chrysler and Jeep models, is about 60 miles west of Chicago. The plant is almost 5 million square feet on 280 acres. It was built in the 1960s and employs 3,580 workers on two shifts, according to the company’s website.

It’s not clear precisely how Cherokee sales have performed recently. The company, as Fiat Chrysler, had been releasing sales on a quarterly basis, and issued its last sales release in January.

Cherokee sales were off more than other Jeep models in 2020, which reflected the impact of the coronavirus pandemic throughout most of the year.

More:Cherokee Nation chief: Our name should not be used on Jeep SUVs

More:Fiat Chrysler, citing rental car woes, says sales dropped for 4th quarter, full year 2020

More:Stellantis boss Tavares tours Detroit plants, talks up Chrysler brand

The SUV’s sales in the United States were down 29% to 135,855 vehicles in 2020, according to the company. FCA had cited a sharp decline in rental car fleet orders with COVID-19 as a major factor in its overall 17% U.S. sales decline.

The possibility that jobs cuts could follow the merger that created Stellantis in January has been the subject of some speculation. CEO Carlos Tavares, however, has suggested that the merger could prevent significant cuts. The merger has been justified as a way to create billions of dollars in synergies without plant closures.

“Stellantis is a shield,” he said last month during a news conference, noting that there are “many more things to do in a car company than just cutting jobs.”

Separate from the layoff issue, the Jeep Cherokee and Grand Cherokee were the subject of other news this week after Chuck Hoskin Jr., the principal chief of the Cherokee Nation, said it’s inappropriate for Jeep to use the Cherokee name for its vehicles. Hoskin made his remarks after he was asked about the topic by Car and Driver magazine.